Avid Bioservices Inc (CDMO)

[Fire Fox]

Licensing royalties for biotechs are normally in the 10-15% range. To persuade a BP to give up 40% or 50% of the pie, you have to have strong negotiating leverage, which comes from multiple factors, including:

-- great efficacy data in at least one major indication;
-- broad spectrum platform likely to work in multiple cancer types;
-- great safety profile;
-- great future for diagnostic applications;
-- great potential for 2nd generation applications from conjugating Bavi with a toxic payload;
-- a clinical management team with enough depth to perform some fair share of the clinical work.